3444 Mountain Tyme Way, Sevierville, TN

OFFICE PHONE: 865-774-7764
eMail: info@easttnexperts.com

We service ALL areas of East Tennessee!
We can also show and sell ANY property in Tennessee!

Our Featured Properties

Wednesday, February 24, 2010

ETRG Sale-A-Bration! Congratulations to Jerry Sandifer!

East Tennessee Realty Group congratulates it’s very own Jerry Sandifer, co-owner, on his million dollar sale of property in Wears Valley!

 

Despite several stumbling blocks in his path, Jerry persevered straight to the closing table with his buyers.

 

The entire East Tennessee Realty Group family along with the Town and Country Title crew surprised Jerry with a celebratory lunch at the Chop House restaurant in nearby Sevierville.

 

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Monday, February 22, 2010

East Tennessee Realty Group; Now HUD Certified

What is a HUD Property?

Are you interested in HUD property but aren’t quite ready to purchase? 

Maybe you want some assistance and information about the following:

·         Personally viewing HUD properties

·         Submitting a bid on a home or preparing to purchase a home

·         Understanding how the buying process works

 

Allow us to clarify some things first.

People think that buying a HUD home is as simple as finding one they like online and buying it…Not true. People also think that HUD forecloses on properties thus resulting in HUD foreclosures…Not true.

 

First of all you should know that HUD does not foreclose on homes.

 

There are no HUD foreclosures despite the advertisements you see floating around. 

There are HUD owned properties. Sorry to be the bearer of bad news.

 

Truth;  a home becomes a HUD Home because someone that had a FHA Insured loan, defaulted on the loan from their lender (not HUD) and was foreclosed by their lender, not HUDThe lender in turn collects from FHA (Federal Housing Administration) any losses they incurred from foreclosing. 

 

FHA is part of HUD.  But FHA only insures mortgages.  They are not a lender.  HUD in turn eventually gets the deed to the property and offers it for sale to the general public after much red tape is gone through, typically taking from 8 to 12 months. 

 

Understanding HUD owned properties

If the house you are interested in is a HUD owned property, it was last purchased with a Federal Housing Administration (FHA) insured mortgage.  The Federal Government insured the loan and agreed to repay the lender for all money lost if the property is foreclosed on. This made the previous mortgage possible.  The Federal Government protects itself by

collecting a mortgage insurance premium at the time of purchase of a FHA insured home.  The MIP rate is typically 2.25% of the financed amount and helps the buyer reduce their initial out of pocket expense to as little 3% of the purchase price, making it possible for many more buyers to buy homes.  This mortgage insurance premium is combined with the monthly mortgage payment.

 

 

Benefits to buying a HUD owned property:

·                     No Appraisal required

·                     Instant equity

·                     Flexible Credit requirements

·                     Low money down.

·                     HUD will pay all closing costs. (Up to 5% in some states)

 

The flip side of the coin

HUD homes have typically been vacant for the length of time it takes them to get the deed which,

as previously mentioned, could be as long as 12 months.  During this time the property has sat without any utilities being on such as heat and air or water.  This is one reason all HUD homes are sold “as is” with no condition warranties at all.  That said, should repairs be necessary there is a

FHA program available for buyers that will allow for up to $5,000 in repair costs through a program called FHA 203K rehab loan program.

 

 

Two types of properties offered through HUD:

 

Insured Properties:

 

HUD’s preliminary inspections and appraisals indicate that there is less than $5,000 in repairs needed for the property to meet HUD’s minimum property standards.  This is important because you need to know that the minimum property

standards are, in fact very minimum.

 

Un-insured Properties:

 

These homes need more than $5,000 in repairs and often need $10,000 to $20,000 or more.   This is where the

FHA 203k rehab loan comes into play.  A good qualified lender, experienced in FHA financing can help you with this.

The interest rates and the amount of loan discount points are usually a little higher than a standard FHA loan, but you

can often buy these properties at significant, below market prices if you are willing to put up with the higher fees and

the hassle of making the repairs.

As a HUD Certified Selling Agency we can show and sell any property in the state of Tennessee.  Contact us today! 

865.774.7764 Local    

888.662.3874 Toll Free

www.easttnexperts.com

info@easttnexperts.com

 

 

 

 

 

 

 

Friday, February 19, 2010